Deadline for exchange and completion missed

Sudheesh

Hi All,

I am asking this question on behalf of my friend.
He had paid £500 registration fee for a new house built by a nationally known building company. He was given a deadline of 16th of April for contract exchange and 30th April for completion.
Due to various delays in securing mortgage and other things the exchange didn't go through, but these delays were communicated to the builder's solicitors who appeared okay with it.

He was hoping to do exchange and contract on 30th April (is this even possible to do both in the same day?) as this is what was advised by his solicitor as well I believe. When finally his solicitor contacted the builder's solicitor before end of day on 30th April, they said they cannot do this with in end of day today, so the completion deadline will be missed and so they are going to remarket the property. My friend wasn't even aware that this deadline was written in stone. He even had a house tour given on 27th April and so he thought everything is in order. He even ordered some furniture the next day.

He had transferred a 25% deposit to his solicitor about a week ago, but this was not transferred to the builders and is still with his solicitor. The builders now say, since the deadline is missed it cannot be sold for the price it was offered and he has to pay an extra £22K(!!) and they are prepared to go down to an extra 12K!

Nobody ever warned him about this deadline, not even his solicitor, who says it is not his mistake the mortgage got delayed. But shouldn't she be jumping up and down telling him "hey! hey! the deadline is approaching, sort this out"?? She herself wanted proof of source for the deposit money he paid because part of it come from my his dad overseas. But she seemed not bothered about the deadline at all, she could have rushed it and asked for the proof much before than when she asked for it.

He has lost some money in solicitor fee and other things (nearly 2K). Since the builders didn't warn about the deadline at all, can he make them go ahead with the sale at all citing this?
To me it looks like his solicitor hasn't done her job properly. Shouldn't he somehow get his solicitors fee back?

The poor guy is heartbroken; any advice please?

Mortgage_Mark_2

It really depends on the wording of whatever reservation contract he had with the developers.

If it states an exchange deadline as mentioned then he's pretty snookered. The lackadaisical or otherwise approach of the solicitor is a different matter. In fairness, it isn't her job to chase the mortgage through but you'd think if she knew about a deadline she'd be a bit urgent about it.

It is possible to exchange and complete on the same day, but it doesn't happen all that often.

patricia..xx

It isn't a "legal" deadline, it is just something builders put in place to get people moving quickly.

From what you have said, he did know about the deadline from the beginning. Was his solicitor made aware of this? Even if she knew, it wasn't a legal requirement to complete, just a preferred date, so I cannot see she is at fault, especially as the delay was with the mortgage.

It is normal that the solicitor would have the deposit still.

As to what to do next, figure out exactly when you can exchange and complete from the solicitor - it sounds as if this could happen right now. Speak directly to the builder and see if they want the money now, or if they prefer to remarket and potentially get more in 6-8 weeks time. Only they can decide.

Basically, be nice and appeal to their better nature. Shouting and fussing about something that you knew about from the start isn't going to help

Sudheesh

Thanks guys. I do believe he took the deadline too casually.
And yes, the solicitor knew about the deadline too. She could have shown some urgency too. And the delay was not just about the mortgage the funds were in solicitor's account couple of days before the deadline. But in the last minute she then asked for proof of source for the deposit he put and he had to sort that out in the last minute. The deposit and bank statements were given several days ago. Knowing this deadline she could have asked for the proof before.

The problem is the builders are not prepared to come down from the extra £12K. And no, nobody is shouting and fussing about anything. From the looks of it he just sort of gave up and blames himself for everything. He has already sold his current house. Not sure what will he have to do about that now. I just felt sorry for the guy and thought I will ask here if there is any hope.